Prabowo Faces Investor Doubts Despite 75-Basis-Point Rate Hikes as Rupiah Rebounds From Record Low
Updated
Updated · Bloomberg · Jun 10
Prabowo Faces Investor Doubts Despite 75-Basis-Point Rate Hikes as Rupiah Rebounds From Record Low
3 articles · Updated · Bloomberg · Jun 10
Summary
A surprise Bank Indonesia rate increase on Tuesday lifted the rupiah off a record low, but analysts said the move is unlikely to rebuild lasting confidence in President Prabowo Subianto’s economic management.
Citigroup and ANZ said investors want clearer fiscal plans from Prabowo and broader steps to make Indonesian markets more attractive, not just tighter monetary policy.
Robeco said even back-to-back rate increases totaling 75 basis points in recent weeks still do not make Indonesian bonds sufficiently rewarding for foreign investors.
The gap between short-term currency support and longer-term credibility underscores that restoring confidence will depend more on policy clarity and market reforms than on further rate hikes alone.